----> The Arab countries have a lot of money -----> USA was recovering from the Vietam war
1. U.S. no money due to 1973 oil embargo and Vietnam War 2. * Latin American countries were willing to use that money to develompent matters, so received loans
• Monetary Fund (IMF Intenational) --------> Colombia is conditioned to fight illiteracy as an example. Economy and polictics always come together
• (cheap money) -----> Lot of money in the economy evolves very low price of U.S. -------> began to recover the money in Latin America was also to encourage or promote their industries and compete Worldwidwide - ----> When money began to deplete Latin America could not afford their own foreign debts
3. The U.S. dollar and the Latin American foreign exchange exhausted its foreign debt couldt pay more
4. Debtor countries began to feel the strain of payments manthly that got bigger due to the recession of the economy
5. In August 1982, Mexico stated that couldent pay the debt plus
6. Announcemets you were from other countries such as Brazil, Peru, Argentina and Chile
7. Massive defaults bank has low levels of capital
8. Major players in the crisis, the World Bank, the IMF a global financial meltdown averted
9. Mudding through ---> (plan to retablished the world economy ) was an approach of the WB and the IMF to help to solve the crisis
10 .* agreed reductions on goverment fiscal deficit
control of inflation
increase current expotations devaluluation ------ PIGS (Portugal, Ireland, Greece, Spain)
to change the IMF, the WB will follow
LATIN AMERICA ------> suffered the crisis of the capitalist countries, but depended on them to resolve their crisis fonancil
impact of the crisis --------> intrnation bank was illiquid ----------> disarticulation of economy -----------> impoverishment and pauperization -------------> deterioration of cspitalist system ---------------> deteriotation of welfare satate
1982 DEBT CRISIS
- kind of a consequence of the 1973 crisis :
----> The Arab countries have a lot of money-----> USA was recovering from the Vietam war
1. U.S. no money due to 1973 oil embargo and Vietnam War
2. * Latin American countries were willing to use that money to develompent matters, so received loans
• Monetary Fund (IMF Intenational) --------> Colombia is conditioned to fight illiteracy as an example. Economy and polictics always come together
• (cheap money)
-----> Lot of money in the economy evolves very low price of U.S.
-------> began to recover the money in Latin America was also to encourage or promote their industries and compete Worldwidwide
- ----> When money began to deplete Latin America could not afford their own foreign debts
3. The U.S. dollar and the Latin American foreign exchange exhausted its foreign debt couldt pay more
4. Debtor countries began to feel the strain of payments manthly that got bigger due to the recession of the economy
5. In August 1982, Mexico stated that couldent pay the debt plus
6. Announcemets you were from other countries such as Brazil, Peru, Argentina and Chile
7. Massive defaults bank has low levels of capital
8. Major players in the crisis, the World Bank, the IMF a global financial meltdown averted
9. Mudding through ---> (plan to retablished the world economy ) was an approach of the WB and the IMF to help to solve the crisis
10 .* agreed reductions on goverment fiscal deficit
LATIN AMERICA ------> suffered the crisis of the capitalist countries, but depended on them to resolve their crisis fonancil
impact of the crisis
--------> intrnation bank was illiquid
----------> disarticulation of economy
-----------> impoverishment and pauperization
-------------> deterioration of cspitalist system
---------------> deteriotation of welfare satate